The Securities and Exchange Commission (SEC) has
charged VanEck Associates Corporation for concealing a social media
influencer’s role in the launch of its new exchange-traded fund (ETF).
In March 2021, Van Eck introduced the VanEck Social
Sentiment ETF (NYSE:BUZZ), designed to track an index based on positive
insights from social media and other data sources. However, an investigation by the regulator found that VanEck
had failed to disclose crucial information regarding a prominent social media
influencer’s planned involvement and the fee structure tied to the launch of the ETF.
Andrew Dean, the Co-Chief of the Enforcement Division’s
Asset Management Unit at the SEC, mentioned: “Van Eck Associates’ disclosure failures
concerning this high-profile fund launch limited the board’s ability to
consider the economic impact of the licensing arrangement and the involvement
of a prominent social media influencer as it evaluated Van Eck Associates’ advisory
contract for the fund.”
According to the press release, the SEC emphasized
the importance of accurate disclosures in the financial industry, particularly
concerning issues that could affect advisory contracts and fund launches. According to the regulators, Van Eck Associates has
consented to the SEC’s order. As part of the settlement , the firm agreed to pay
a civil penalty of $1.75 million and accept a cease-and-desist order and
censure.
Despite not admitting or denying the SEC’s findings,
Van Eck has committed to rectifying the lack of disclosure and complying with
regulatory standards.
VanEck Expands ETF Products
Last month, VanEck made a significant commitment to the Bitcoin community. The asset management firm plans to allocate 5% of the fund’s profits to support Bitcoin developers. VanEck is among the asset managers that received the SEC’s approval to launch a spot Bitcoin ETF.
Additionally, VanEck is expanding its offerings to
include Ethereum blockchain. With the launch of the VanEck Ethereum Strategy ETF (EFUT) last year, the company aims to enable investors to access a
tax-efficient avenue for participating in Ethereum’s future contracts.
VanEck’s EFUT ETF diverges from traditional
cryptocurrency investment strategies by focusing on Ethereum futures
contracts. It provides investors with a tax advantage.
The Securities and Exchange Commission (SEC) has
charged VanEck Associates Corporation for concealing a social media
influencer’s role in the launch of its new exchange-traded fund (ETF).
In March 2021, Van Eck introduced the VanEck Social
Sentiment ETF (NYSE:BUZZ), designed to track an index based on positive
insights from social media and other data sources. However, an investigation by the regulator found that VanEck
had failed to disclose crucial information regarding a prominent social media
influencer’s planned involvement and the fee structure tied to the launch of the ETF.
Andrew Dean, the Co-Chief of the Enforcement Division’s
Asset Management Unit at the SEC, mentioned: “Van Eck Associates’ disclosure failures
concerning this high-profile fund launch limited the board’s ability to
consider the economic impact of the licensing arrangement and the involvement
of a prominent social media influencer as it evaluated Van Eck Associates’ advisory
contract for the fund.”
According to the press release, the SEC emphasized
the importance of accurate disclosures in the financial industry, particularly
concerning issues that could affect advisory contracts and fund launches. According to the regulators, Van Eck Associates has
consented to the SEC’s order. As part of the settlement , the firm agreed to pay
a civil penalty of $1.75 million and accept a cease-and-desist order and
censure.
Despite not admitting or denying the SEC’s findings,
Van Eck has committed to rectifying the lack of disclosure and complying with
regulatory standards.
VanEck Expands ETF Products
Last month, VanEck made a significant commitment to the Bitcoin community. The asset management firm plans to allocate 5% of the fund’s profits to support Bitcoin developers. VanEck is among the asset managers that received the SEC’s approval to launch a spot Bitcoin ETF.
Additionally, VanEck is expanding its offerings to
include Ethereum blockchain. With the launch of the VanEck Ethereum Strategy ETF (EFUT) last year, the company aims to enable investors to access a
tax-efficient avenue for participating in Ethereum’s future contracts.
VanEck’s EFUT ETF diverges from traditional
cryptocurrency investment strategies by focusing on Ethereum futures
contracts. It provides investors with a tax advantage.
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- Source: https://www.financemagnates.com//forex/sec-slaps-vaneck-with-175m-fine-for-concealing-influencer-in-etf-launch/
